- 44% increase in the Indicated resource to 145,982 ounces of
gold and nearly 300% increase in the Inferred category to 250,593
ounces of gold
- Monarch now has 588,482 ounces of combined measured and
indicated resources and 329,393 ounces of combined inferred
resources from its four gold deposits in Abitibi, Québec (see Table
2 at the end of the release)
MONTRÉAL, Feb. 8, 2021 /CNW/
- MONARCH MINING CORPORATION ("Monarch" or
the "Corporation") (TSX: GBAR) is pleased to
announce an updated mineral resource estimate dated February 1, 2021, for its wholly-owned McKenzie
Break project, 25 kilometres north of Val-d'Or, Québec.
Monarch acquired the McKenzie Break property from Agnico Eagle
Mines Limited in 2017 and expanded the property in 2020
through additional purchase agreements with local prospectors and
map staking to now stand at 133 claims covering a total area of
5,130.4 hectares. Located 20 kilometres north of the Beacon mill
and 10 kilometres south of the municipality of Barraute, Québec, the property is accessible
year-round via Route 397 and a gravel road and includes a
portal and 700-metre ramp excavated in 2009.
Geologically, the property straddles the Manneville Tectonic
Zone, interpreted to be the eastern extension of the
Destor-Porcupine Break. Gold mineralization occurs in an elongated
diorite unit or lens within a shallow embayment of the Pascalis
Batholith.
The 2021 updated resource estimate follows the 2018-2020 diamond
drilling programs completed by Monarch that included 75 drill holes
totalling 20,037.9 metres. The 2018-2020 programs were focused
on better defining and expanding the mineralization within the
previously proposed pitshell and the deeper known mineralization.
This new diamond drilling focused on the mineralization covering an
area measuring 1,300 metres along strike by 900 metres and to a
vertical depth of 455 metres.
Monarch mandated Geologica Groupe-Conseil Inc. of Val-d'Or and GoldMinds Geoservices of Québec
to prepare and update the July 12,
2018, NI 43-101 Technical Evaluation Report and Resource
Estimate prepared by Geologica and GeoPointCom. The 2021 updated
resource estimate was calculated to present resources with both
constrained pit and underground potential. The current resource
estimate for Monarch indicates that:
- The resource estimate is confined to 30 parallel and stacked
mineralized zones / vein structures that have been identified on
the property.
- The estimated resources are reported for combined constrained
pit and underground scenarios.
- The total Indicated resource stands at 1,829,097 t at 2.48 g/t
Au for 145,982 ounces of gold.
- The total Inferred resource stands at 3,327,065 t at 2.34 g/t
Au for 250,593 ounces of gold.
- Many of the high-grade intersections outside of the pit shell
are open. It is likely that additional diamond drilling would
increase the Inferred tonnage and allow some of the Inferred
resources to be upgraded to the Indicated category.
Figure 1: Property geology with expanded property
limits.
Figure 2: McKenzie Break deposit; sectional view looking
W-NW. Proposed pit shell and underground resources.
Figure 3: McKenzie Break deposit; plan view. Proposed pit
shell and underground resources.
The estimate is based on a database of 333 drill holes,
57,789 metres of drilling and 34,026 assays. A total of 30
mineralized envelopes were modelled and validated. Capping was
applied to raw assays before compositing, with grades capped at 60
g/t Au for the mineralized zones. The independent and qualified
persons for the mineral resource estimate, as defined by
NI 43–101, are Merouane
Rachidi, P.Geo., and Claude Duplessis, Eng., of GoldMinds
Geoservices.
Table 1 presents the combined resources (in-pit and underground)
by category for the McKenzie Break deposit at the selected cut-off
grades.
Area (cut-off
grade)
|
Indicated
resource
|
Inferred
resource
|
Tonnes
(t)
|
Grade
(g/t)
|
Ounces
(Au)
|
Tonnes
(t)
|
Grade
(g/t)
|
Ounces
(Au)
|
Pit-constrained (0.50
g/t Au)
|
1,441,377
|
1.80
|
83,305
|
2,243,562
|
1.44
|
104,038
|
Underground (2.38 g/t
Au)
|
387,720
|
5.03
|
62,677
|
1,083,503
|
4.21
|
146,555
|
TOTAL
|
1,829,097
|
|
145,982
|
3,327,065
|
|
250,593
|
|
|
Notes:
|
|
|
|
- Mineral resources which are not mineral
reserves do not have demonstrated economic viability. An Inferred
Mineral Resource has a lower level of confidence than that applying
to a Measured and Indicated Mineral Resource and must not be
converted to a Mineral Reserve. The estimate of mineral resources
may be materially affected by environmental, permitting, legal,
title, market or other relevant issues. The quantity and grade of
reported inferred resources are uncertain in nature and there has
not been sufficient work to define these inferred resources as
indicated or measured resources.
- The database used for this mineral estimate
includes drill results obtained from historical records and up to
the recent 2018-2020 drill program.
- Mineral Resources are reported at a cut-off
grade of 0.50 g/t Au for the pit-constrained and Underground
mineral resources are reported at a cut-off grade of 2.38 g/t Au
within reasonably mineable volumes.
- These cut-offs were calculated at a gold
price of C$1,980 ounce.
- The pit-constrained resources were based on
the following parameters: mining cost $3.5/t, processing,
transportation + G&A costs $27/t, Au recovery 95%, pit slopes
15 degrees for overburden and 50 degrees for rock.
- The underground reasonably mineable volumes
were based on the following parameters: mining cost $98/t,
processing, transportation + G&A costs $27/t, Au recovery 95%,
dilution of 15% at 0 g/t Au with a minimum stope dimension of 10m x
10m x 5m.
- The geological interpretation of the deposits
was based on lithologies and the typical mineralized interval
mainly composed by diorite hosted shear zones.
- The mineral resource presented here was
estimated with a block size of 5m X 5m X 5m for the pit-constrained
and for underground.
- The blocks were interpolated from equal
length composites calculated from the mineralized intervals.
Prior to compositing, high-grade gold assays were capped to
60 g/t Au applied on 0.6-metre composites.
- The mineral estimation was completed using
the inverse distance squared methodology utilizing two passes. For
each pass, search ellipsoids followed the geological interpretation
trends were used.
- Tonnage estimates are based on rock specific
gravity of 2.77 tonnes per cubic metre for all the zones. Results
are presented undiluted and in situ.
- Estimates use metric units (metres, tonnes
and g/t). Metal contents are presented in troy ounces (metric tonne
x grade / 31.10348).
- This mineral resource estimate is dated
February 1, 2021, and the effective date for the drillhole database
used to produce this updated mineral resource estimate is September
28, 2020.
- No economic evaluation of the resources has
been produced.
|
This updated mineral resource results in 44% more gold in the
Indicated category and 291% more gold in the Inferred category
compared to the 2018 resource estimate (Geologica, 2018). The
resource in the area of the proposed pit shell was expanded due to
increase drilling below and at the outer edges the proposed pit
shell. The underground resource increased significantly due to the
new zones discovered at depth and exploration drilling completed at
50-m centres in an attempt to define the limits on the mineralized
zone.
Some of the better intersections from this recent exploration
step-out drilling incorporated into the resource estimate included
32.30 g/t Au over 7.1 m in hole
MK-18-205ext (see press release dated February 26, 2020) and 13.95 g/t Au over
14.35 m in hole MK-20-255 (see press
release dated July 23, 2020).
The mineralized envelope has yet to be closed off and Monarch
continues to drill it off at 50-m centres. Monarch has planned a
38-hole, 14,500 metre follow-up drilling program to continue to
expand the limits of the known mineralization. This follow-up
drilling is in progress, with results pending.
"We are very pleased with the updated resource estimate," said
Jean-Marc Lacoste, President and
Chief Executive Officer of Monarch. "Our 2018-2020 drilling
programs have allowed us to significantly expand the known
mineralized envelope, which lies at a relatively shallow depth.
These programs totalling 20,037.9 metres of drilling managed to add
44,401 ounces of indicated material and 186,566 ounces of inferred
material, which translate to an additional 2.2 ounces of
indicated resource and 9.3 ounces of inferred resource for every
metre we drilled. We believe that McKenzie Break continues to hold
significant exploration potential, as shown by these latest
results, and we intend to develop that potential through efficient
drilling programs."
The resource estimate was prepared by Merouane Rachidi, P.Geo., Ph.D., and
Claude Duplessis, P.Eng., of
GoldMinds Geoservices Inc., both qualified persons in accordance
with National Instrument 43-101 standards. The technical and
scientific content of this press release has been reviewed and
approved by Louis Martin, P.Geo.,
the Corporation's qualified person under National Instrument
43-101.
About Monarch
Monarch Mining Corporation (TSX: GBAR)
is a fully integrated mining company that owns four advanced
projects, including the fully permitted past-producing Beaufor
Mine, which has produced over 1 million ounces of gold over the
last 30 years. Other advanced assets include the Croinor Gold,
McKenzie Break and Swanson
properties, all located near Monarch's wholly owned and fully permitted
Beacon 750 tpd mill. Monarch owns more than 260 km2
of mining assets in the prolific Abitibi mining camp that host
588,482 ounces of combined measured and indicated gold resources
and 329,393 ounces of combined inferred resources.
Forward-Looking Statements
The forward-looking
statements in this press release involve known and unknown risks,
uncertainties and other factors that may cause Monarch's actual
results, performance and achievements to be materially different
from the results, performance or achievements expressed or implied
therein. Neither TSX nor its Regulation Services Provider (as that
term is defined in the policies of the TSX) accepts responsibility
for the adequacy or accuracy of this press release.
Table 2 - Monarch combined gold resources
|
Tonnes (metric)
|
Grade
(g/t Au)
|
Ounces
|
Croinor
Gold1
|
|
|
|
Measured
Resources
|
80,100
|
8.44
|
21,700
|
Indicated
Resources
|
724,500
|
9.20
|
214,300
|
Total Measured and
Indicated
|
804,600
|
9.12
|
236,000
|
Total
Inferred
|
160,800
|
7.42
|
38,400
|
Beaufor
mine2
|
|
|
|
Measured
Resources
|
121,000
|
5.62
|
21,900
|
Indicated
Resources
|
310,100
|
7.10
|
70,800
|
Total Measured and
Indicated
|
431,100
|
6.68
|
92,700
|
Total
Inferred
|
134,600
|
6.96
|
30,100
|
McKenzie
Break3
|
|
|
|
In-pit
|
|
|
|
Total
Indicated
|
1,441,377
|
1.80
|
83,305
|
Total
Inferred
|
2,243,562
|
1.44
|
104,038
|
Underground
|
|
|
|
Total
Indicated
|
387,720
|
5.03
|
62,677
|
Total
Inferred
|
1,083,503
|
4.21
|
146,555
|
Swanson4
|
|
|
|
In-pit
|
|
|
|
Total
Indicated
|
1,864,000
|
1.76
|
105,400
|
Total
Inferred
|
29,000
|
2.46
|
2,300
|
Underground
|
|
|
|
Total
Indicated
|
91,000
|
2.86
|
8,400
|
Total
Inferred
|
87,000
|
2.87
|
8,000
|
TOTAL
COMBINED5
|
|
|
|
Measured and
Indicated Resources
|
|
|
588,482
|
Inferred
Resources
|
|
|
329,393
|
|
1 Source:
Monarch Gold prefeasibility study (January 19, 2018) and resource
estimate (January 8, 2016). This resource was completed for Monarch
Gold and has not been reviewed by a qualified person for Monarch
Mining as required under National Instrument 43-101 and is thus
considered as an historical estimate.
2 Source: NI 43-101 Technical Report
and Mineral Resource Estimate for the Beaufor Mine, December 18,
2020, Val-d'Or, Québec, Canada, Carl Pelletier, P. Geo., InnovExplo
Inc. and John Langton, P. Geo., JPL GeoServices Inc.
3 Source: NI 43-101 Technical
Evaluation Report on the McKenzie Break Property, February 1, 2021,
Val-d'Or, Québec, Canada, Alain-Jean Beauregard, P.Geo., Daniel
Gaudreault, P.Eng., Geologica Groupe-Conseil Inc., and Merouane
Rachidi, P.Geo., Claude Duplessis, P.Eng., GoldMinds GeoServices
Inc.
4 Source: NI 43-101 Technical Report
and Mineral Resource Estimate for the Swanson Project, January 22,
2021, Val-d'Or, Québec, Canada, Christine Beausoleil, P. Geo. and
Alain Carrier, P. Geo., InnovExplo Inc.
5 Numbers may not add due to
rounding.
|
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SOURCE Monarch Mining Corporation